MUMBAI: Markets regulator Sebi has fined Jai Anmol Ambani, elder son of businessman Anil Ambani, Rs 1 crore for irregularities in Reliance Home Finance (RHFL). Sebi has also slapped a penalty of Rs 15 lakh on Krishnan Gopalakrishnan, chief risk officer at RHFL between Nov 2016-18, for similar violations.
Sebi’s penalty on Jai Anmol was for his approval of two general purpose loans, one each to Accura Production Private and Visa Capital Partners, the markets regulator said.He was the director of RHFL between April 2018 and May 2019.
The investigation report, however, mentioned that there was no observation in the show-cause notice which could point out anything that transpired in some meetings at RHFL that could “bring (Jai Anmol) under the purview of regulatory intervention. There is no observation which demonstrates that (Jai Anmol) enjoyed any power to direct (RHFL’s CEO) to act in a particular manner on any matter. (RHFL’s CEO) worked under the overall superintendence and direction of the board of directors of RHFL, which had given him powers as CEO,” the report said. “Therefore, generic organograms cannot be relied upon to make allegations for penal intervention.”
The current investigation order came exactly a month after Anil Ambani and 24 of his associate entities were together fined Rs 624 crore by the regulator for diversion of funds from RHFL. Those 25 entities were barred from the securities market for five years each, and asked not to associate with any listed entity, also for five years.
Sebi’s penalty on Jai Anmol was for his approval of two general purpose loans, one each to Accura Production Private and Visa Capital Partners, the markets regulator said.He was the director of RHFL between April 2018 and May 2019.
The investigation report, however, mentioned that there was no observation in the show-cause notice which could point out anything that transpired in some meetings at RHFL that could “bring (Jai Anmol) under the purview of regulatory intervention. There is no observation which demonstrates that (Jai Anmol) enjoyed any power to direct (RHFL’s CEO) to act in a particular manner on any matter. (RHFL’s CEO) worked under the overall superintendence and direction of the board of directors of RHFL, which had given him powers as CEO,” the report said. “Therefore, generic organograms cannot be relied upon to make allegations for penal intervention.”
The current investigation order came exactly a month after Anil Ambani and 24 of his associate entities were together fined Rs 624 crore by the regulator for diversion of funds from RHFL. Those 25 entities were barred from the securities market for five years each, and asked not to associate with any listed entity, also for five years.
